This article offers a perspective on analyzing the growth
of the U.S. economy by treating the economy as a very
large firm. A well-functioning economy maximizes
households’ well-being rather than firms’ profits, so
policymakers’ objectives and motivations are not as
clear-cut as those of company chief executives. Still,
as in any business, identifying areas of weakness and
relative strength in the economy is inherently valuable
in guiding decision-making.